This invention relates to the use of radio frequency (RF) identification technology in the area of automatic payment systems. Stored value contactless cards with RF and memory chips is a popular method for implementing high speed, low value payment systems. These are particularly true for mass transit systems, tollways and bus systems where the payment transaction has to be completed in a matter of seconds. In the case of train systems, plastic contactless smart cards are normally used, while for tollways, vehicle-mounted transponders or tags are used for non-stop electronic payments. The value in these cards or tags are replenished or re-loaded by going to a reloading station or outlet such as a customer service center, a vending machine or a retail shop where the customer pays by cash or by credit card and presents his card or tag.
Cellular phones are also being used for making payments, whereby the customer enrolls first for the payment service and then every time a payment has to be made, the customer sends a text message consisting of a security code, the amount to be paid and other pertinent data to a special access number. This method is suitable for making purchases for goods in retail shops or malls and paying for services where the speed of the transaction is not critical.
The invention being described combines the speed of RF ID technology and the proliferation and convenience of cellular phones. It capitalizes on the fact that there are hundreds of millions of cellphone users worldwide and whether the person is driving a car, riding a train or shopping in a mall, he always has his cellphone with him. It is a fast way of making payments because there is no need to send text messages. In mass transit systems, the cellphone is simply waved on a Reader located on top of the gate. In tollways, the customer drives through the toll plaza and as long as the cellphone is located within the driver's area it will be automatically sensed by a Reader installed on the side of the toll booth. For retail payments such as in fastfood outlets, the cellphone is simply waved on the Reader located near the store's cashier or Point-of-Sale terminal. No user intervention is needed.
The RF ID chip with memory is either in the form of a thin flat module which is attached to the back of the cellphone or embedded in the SIM card inside the cellphone. To re-load the chip or module, the user simply sends a text message to a special access number, specifying the amount to be loaded and his security code.
With this system, re-loading is very convenient because it can be accomplished anytime from anywhere. The balance in the chip can be checked any time by simply sending a text request. The module has multiple uses. It can be used in tollways, mass transit systems, fastfood outlets, cinemas, concerts and convenience shops. The infrastructure needed to support it is inexpensive, especially as compared to tollways where the cost of Readers for Toll Collection Tags are very high. In the case of train systems, there is no need for expensive vending machines or cash-based loading outlets at the train stations since re-loading can be done completely on the cellphone.
Research on the prior art listed below either require use of texting for completing the transaction or does not use RF ID technology:    US20030078895 Use of Cellular Phones for Payment of Vending Machines—MacKay, George    WO04023366A1 System for Electronically Settling by Using Mobile Phone & Method Thereof—Kim, Chong-Ki    US20030022655 System and Method for Implementing Financial Transactions using Cellular Phone Data—Bogat, Antonio    U.S. Pat. No. 6,535,726 Cellular Telephone-based Transaction Processing—Johnson, William    JP2001042017A2 Payment Method using Cellular Phone—Ikehara, Horoharu    JP2001243513A2 Method and Device for Automatic Payment of Toll Highway Fare using Cellular Phone—Ishihara Isao et al    US20040263356 Automatic Car Toll Paying Method—Wu, Quen Zong et al    US20040107170 Apparatus for Purchasing of Goods and Services—Labrou, Yannis et al